HomeMy WebLinkAboutResolution No. 2021-257111,
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KENAI
CITY OF KENAI
RESOLUTION NO. 2021-25
Sponsored by: Administration
A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AWARDING A
CONTRACT FOR EXTERNAL AUDIT SERVICES TO BDO USA, LLP.
WHEREAS, Section 5-10 of Kenai's Municipal Charter provides: "the Council shall order an
independent audit of the accounts and evidences of financial transactions of the Department of
Finance and of all other departments, offices, and agencies keeping separate or subordinate
accounts or making financial transactions, as of the end of every fiscal year at least, and the audit
shall be reported to the Council and to the City Administrator; and,
WHEREAS, on March 26, 2021 the following responsive proposals to perform external audit
services for the City were received:
Proposer Score
BDO USA, LLP. 376.00
Elgee Rehfeld, LLC 327.28; and,
WHEREAS, BDO USA, LLP provided the highest ranked proposal; and,
WHEREAS, the contract amount for completion of the City's FY2021 financial audit will be
$52,000 and the contract amount will increase in subsequent years by a percentage equal to the
Anchorage Consumer Price Index for the preceding calendar year; and,
WHEREAS, the FY2022 City of Kenai Annual Budget will include sufficient funding for the City's
financial audit for Council's consideration; and,
WHEREAS, award of the contract to BDO USA, LLP satisfies the requirement of Section 5-10 of
Kenai's Municipal Charter and is in the best interest of the City.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA
Section 1. That the City Manager is authorized to execute a contract for the City's external
audit services to the highest-ranking proposer, BDO USA, LLP, for a period of three -years and
upon mutual consent the City Manager is authorized to execute two, one-year contract extensions
if it is determined to be in the best interest of the City without further Council action.
Section 2. Upon adoption of the FY2022 City of Kenai Annual Budget and subject to
appropriation, the City Manager is authorized to issue a purchase order in the amount of $52,000
for completion of the FY2021 external audit.
Resolution No. 2021-25
Page 2 of 2
Section 3. That this resolution takes effect immediately upon passage.
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 21s' day of April, 2021.
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BRIAN GABRIEL SR., MAYOR
ATTEST:
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Heinz, MMC, City
Approved by Finance:
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City of Kenai 1 210 Fidalgo Ave, Kenai, AK 99611-7794 1907.283.7535 1 www.lcenai.city
MEMORANDUM
TO: Mayor Gabriel and Council Members
THROUGH: Paul Ostrander, City Manager
FROM: Terry Eubank, Finance Director
DATE: April 12, 2021
SUBJECT: Resolution 2021-25
The purpose of this memo is to recommend approval of Resolution 2021-25. Resolution 2021-
25 will award a three-year contract, with opportunity for two, one-year extensions by mutual
consent, for external audit services to BDO USA, LLP.
A request for proposal was released on March 1, 2021. Three responses were received on March
26, 2021 with two deemed responsive and forwarded to the review committee for evaluation. A
committee of four, including Vice Mayor Malloy and Council Member Glendening, Scott Curtin
and myself, reviewed and ranked the proposals based on experience, technical qualifications,
responsiveness, references and cost with the following results:
Proposer Score
BDO USA, LLP 376.00
Altman, Rogers & Co. 327.28
The selection process utilized was a request for proposal and not a bid. BDO USA, LLP provided
a cost proposal of $52,000 for year one of the contract. The fee amount for subsequent years
will increase by the increase in the Anchorage Consumer Price Index. The FY2022 City of Kenai
Annual Budget will include sufficient funding for the City's financial audit for Council's
consideration
BDO USA, LLP was the highest-ranking proposer and execution of a contract for external audit
services with BDO USA, LLP is recommended.